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ARTICLE · 17 APRIL 2024

ASIC secures victory in greenwashing case against Vanguard

Piper Alderman
Piper Alderman
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Piper Alderman

Piper Alderman

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Businesses can expect to see an increase in greenwashing regulatory investigations.

AustraliaFinance and Banking
Andrew Rankin
Andrew Rankin
Caren Klavsen
Caren Klavsen
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The Australian Securities and Investments Commission (ASIC) has secured victory against Vanguard, a prominent global investment management firm in Australia, marking a pivotal moment in the battle against greenwashing in the financial sector. The Federal Court has found that Vanguard Investments made false and misleading representations and engaged in conduct that was liable to mislead the public about an "ethically conscious" fund.

Background

Last year Piper Alderman reported on two significant greenwashing actions launched by ASIC. The first being a greenwashing action against retail superannuation fund Mercer, alleging it misled members of its Sustainable Plus fund by claiming that fund excluded investments in "companies involved in carbon-intensive fossil fuels, alcohol production and gambling". The second being the civil penalty proceedings in the Federal Court against investment giant Vanguard Investment (Vanguard), alleging misleading conduct in relation to

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